Willing to Negotiate

AMLO is “willing to negotiate.”

Of course he is.   President Trump will get just what he wants, too.   Mexico will dramatically reduce the flow of Salvadoran and Guatemalan “migrants.”   And the tariff will pay for the Wall.

Winning is fun.

“I believe we will be able to reach an agreement, because reason is with us,” Mexican President Andrés Manuel López Obrador said at a news conference in Veracruz, insisting that Mexico wants to maintain a good relationship with the United States.
López Obrador said Mexico is not interested in a tariff war, but slammed Trump’s tariff proposal as unfair.
Yeah, of course; that is for domestic consumption in Mexico.   But he is not in a good negotiating position.   There are four key elements to the Mexican economy.   Drug gangs, money sent home by Mexicans in the U.S., oil money, and the maquiladoras that turn cheap parts from China into manufactured goods qualifying for NAFTA export to the U.S.
Mexico cannot withstand the pressure that President Trump is applying.   The pain will begin in about five minutes.
Opponents of Trump’s tariff proposal warn the move would hurt American consumers and undercut efforts to ratify the US-Mexico-Canada Agreement.
Of course they did.   That is the only part of this story that will get coverage by mass media.   Their fearmongering led to a stock market slump on Friday.   Expect more of the same.   They will wring as much negativity as they can from this story.   Then they will go silent when President Trump achieves his victory.
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27 thoughts on “Willing to Negotiate”

  1. Gosh MJB, I want you to be right but China is not capitulating and the market is crashing.

    I don’t even care about Mexico tariffs at this point; that country is an immigration problem only.

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  2. EThompson:
    China is not capitulating and the market is crashing.

    China is feeling the pain and there will be progress in those negotiations.   Especially if the tariffs on Mexico affect Chinese suppliers to the maquiladores.   Trump can play hardball with the Mexicans to demonstrate that he will not fold to domestic pressure the way previous Republican presidents did.

    The pressure that will affect President Trump the most will come from the Chamber of Commerce.   He will look at them thinking that they should be his allies, but the Forbes top 100 are globalists and do not care about American interests.

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  3. MJBubba:
    China is feeling the pain and there will be progress in those negotiations.   Especially if the tariffs on Mexico affect Chinese suppliers to the maquiladores.

    Theoretically you are correct but the MSM and the uninformed masses (how Hamiltonian of me!) will continue to encourage volatility in the market.

    I’m extremely pissed off right now because farmers are hurting and they represent a significant percentage of red state votes. The Don is doing the right thing in terms of political policy but he isn’t massaging it correctly. 2020 is right around the corner and if Joe Biden wins WI, MI, and PA, we’re all screwed.

    Yes, I believe Biden will be the candidate because the Dems will trade their socialist dreams in order to win. I look forward to anyone on this site convincing me that I am wrong.

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  4. John Walker:

    EThompson:
    …I want you to be right but China is not capitulating and the market is crashing.

    “[C]rashing”?  That depends upon your time horizon.

    S&P 500: 2012 to present

    You’re looking at percentages; I look at dollars lost per individual stocks. There was no reason for FB to drop from 218 to 177. It’s a well run company with sound financials but people are now worrying about privacy or political affiliations?

    Who cares? I invested and have never opened a FB acct in my life.

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  5. EThompson:
    You’re looking at percentages; I look at dollars lost per individual stocks. There was no reason for FB to drop from 218 to 177. It’s a well run company with sound financials but people are now worrying about privacy or political affiliations?

    You shoulda bought NFLX instead.

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  6. drlorentz:

    EThompson:
    You’re looking at percentages; I look at dollars lost per individual stocks. There was no reason for FB to drop from 218 to 177. It’s a well run company with sound financials but people are now worrying about privacy or political affiliations?

    You shoulda bought NFLX instead.

    Don’t think so. I only choose one or two growth stocks and I don’t like the $8.57 drop on Friday.

    I should own way more Amazon and Google than I do.

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  7. MJBubba:
    The pressure that will affect President Trump the most will come from the Chamber of Commerce.   He will look at them thinking that they should be his allies, but the Forbes top 100 are globalists and do not care about American interests.

    These Quislings are so predictable.

    “Imposing tariffs on goods from Mexico is exactly the wrong move,” said Neil Bradley, executive vice president of the U.S. Chamber of Commerce, which is exploring legal action in response to the tariffs. 

    https://apnews.com/3b0fa1a014d140fb8ad431b5149545b8

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  8. EThompson:
    You’re looking at percentages; I look at dollars lost per individual stocks.

    Dollar-cost average index funds, you’ll be a lot better off!

    There was no reason for FB to drop from 218 to 177. It’s a well run company with sound financials but people are now worrying about privacy or political affiliations?

    Learn from Warren Buffet and use the products of the companies you invest in.  You would have known the bloom is off the rose.  Even on the hiring front, they’re having a hard time with people turning down$100K signing bonuses.

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  9. Facebook has been doing something interesting on LinkedIn. They have short bios of various employees talking about how happy they are to be at Facebook. My business training tells me that it’s a definite strategy, and it comes across like a PR campaign but for HR-related reasons. It’s a way to promote Facebook as a great place to work. I just keep wondering why Facebook sees the need to do this.

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  10. JJ:
    Facebook has been doing something interesting on LinkedIn. They have short bios of various employees talking about how happy they are to be at Facebook. My business training tells me that it’s a definite strategy, and it comes across like a PR campaign but for HR-related reasons. It’s a way to promote Facebook as a great place to work. I just keep wondering why Facebook sees the need to do this.

    That is really interesting.   LinkedIn is Microsoft, so Facebook is leveraging a competitor’s social networking site.

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  11. EThompson:
    Gosh MJB, I want you to be right but China is not capitulating and the market is crashing.

    I don’t even care about Mexico tariffs at this point; that country is an immigration problem only.

    Crashing is relative.  Think long-term.  Trump does.

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  12. Damocles:
    Learn from Warren Buffet and use the products of the companies you invest in.

    Good advice but I prefer to focus upon quarterly earnings and the real possibility of additional witch hunt hearings in Congress. Interestingly enough, the fact that Mark Z may lose his majority voting status didn’t create a ripple in the stock price!?

    BTW, FB signed up over $100,000 new users last month despite all the sturm and drang. Most users (Rats excluded of course) use it as a social network tool and couldn’t care less about privacy or politics.

    P.S. In fact, I’ll take this privacy issue further. Narcissists love exposure to the world regardless of consequences. Z just tapped into this.

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  13. EThompson:

    John Walker:

    EThompson:
    …I want you to be right but China is not capitulating and the market is crashing.

    “[C]rashing”?  That depends upon your time horizon.

     

    You’re looking at percentages; I look at dollars lost per individual stocks.

    Another term for percentages is real dollars, that is, adjusted for inflation, rather than nominal dollars.  Using nominal dollars, the 1929 crash was a sneeze, wiping out only $30B.

    There was no reason for FB to drop from 218 to 177. It’s a well run company with sound financials but people are now worrying about privacy or political affiliations?

    FB may be “well-run”, but so was Nazi Germany.  FB is beginning to fail the dogfood test, well-run or not.

    Who cares? I invested and have never opened a FB acct in my life.

    If investors were the only people who mattered in business, the latter would support the former.

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  14. Haakon Dahl:
    Crashing is relative.  Think long-term.  Trump does.

    So do my husband and I but this time is truly different. We’ve never had a $33 trillion dollar debt before and an openly hostile Congress with a desire to accomplish nothing but impeachment for a non-event. Also, as I mentioned earlier, there are a lot of Trump voters such as farmers who are very unhappy right now so the  market (particularly mortgage stocks) is getting slammed because of uncertainty. The FR hasn’t helped either although I think interest rates did have to go up and have somewhat stabilized at 3.6 to 4%.

    In any case 2020 is not a slam dunk and then that will be the end. We can’t survive another socialist president.

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  15. The Mexican tariff thing won’t work because the Dems and the media will not let it work.  They won’t.  They probably hav people in El Salvador and Honduras and Guatemala right now, spreading the gospel that American companies will pressure  Trump to back down. And AMLO, if ocurse, watches the news and reds Reuters just like everybody else.

    It could  work—and that’s why there’ll be an all-out onslaught bynthe Dems to make sure it doesn’t.

    I cant believe they’re making such a big deal over Trump chuckling over Kim’s “Low IQ Biden” comment.  To criticize a fellow American on foreign soil!  Vulgar, undignified!  Y’mean like Kerry trashing Trump to the Iranians?  Or B. Hussein trashing our country as a whole in Brazil?

    O I am weary….

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  16. Hypatia:
    I cant believe they’re making such a big deal over Trump chuckling over Kim’s “Low IQ Biden” comment.  To criticize a fellow American on foreign soil!  Vulgar, undignified!  Y’mean like Kerry trashing Trump to the Iranians?  Or B. Hussein trashing our country as a whole in Brazil?

    Don’t forget the biggest traitor of them all- Carter!

    Interesting that Reagan, Bushes 41 and 43 would never have considered making such inappropriate remarks outside country. (Trump gets a free pass because he was referring to a non-employed pol and not a sitting POTUS.) Let us also not forget Bill Clinton’s comment after 9/11 that “tragedies such as this can be perpetuated by American citizens as well” and mentioned the Unabomber in the same damn sentence.

    These pols are the sole reason I choose not to exercise my 2nd Amendment rights. I’m afraid of what I might do.

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  17. Haakon Dahl:
    FB may be “well-run”, but so was Nazi Germany.  FB is beginning to fail the dogfood test, well-run or not.

    Hardly the comparison! You’re comparing FB to massive genocide? Slow down there… You’re beginning to sound like Barack Obama.

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  18. Haakon Dahl:

    EThompson:

    John Walker:

    EThompson:
    …I want you to be right but China is not capitulating and the market is crashing.

    “[C]rashing”?  That depends upon your time horizon.

     

    You’re looking at percentages; I look at dollars lost per individual stocks.

    Another term for percentages is real dollars, that is, adjusted for inflation, rather than nominal dollars.  Using nominal dollars, the 1929 crash was a sneeze, wiping out only $30B.

    There was no reason for FB to drop from 218 to 177. It’s a well run company with sound financials but people are now worrying about privacy or political affiliations?

    FB may be “well-run”, but so was Nazi Germany.  FB is beginning to fail the dogfood test, well-run or not.

    Who cares? I invested and have never opened a FB acct in my life.

    If investors were the only people who mattered in business, the latter would support the former.

    You’re wasting your time.

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  19.    Haakon Dahl:

    If investors were the only people who mattered in business, the latter would support the former.

    You’re focusing on silly stuff like politics and personal exposure (to be expected by anyone who opens a FB acct) but I’m looking at quarterly earnings. Z has failed to miss a projection in a long time.

    drlorentz:
    You’re wasting your time.

    Pray tell; on what?

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  20. JJ:
    Facebook has been doing something interesting on LinkedIn. They have short bios of various employees talking about how happy they are to be at Facebook. My business training tells me that it’s a definite strategy, and it comes across like a PR campaign but for HR-related reasons. It’s a way to promote Facebook as a great place to work. I just keep wondering why Facebook sees the need to do this.

    In my experience, LinkedIn is the place for just about all high tech hiring.  Nobody passes around resumes anymore, just LinkedIn pointers.  So if you’re trying to reach the tech workforce, LinkedIn is where you need to be.  And  interestingly Github, recently acquired by Microsoft.

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  21. drlorentz:

    Haakon Dahl:
    FB is beginning to fail the dogfood test, well-run or not.

    What’s the dogfood test? People are eating dogfood because there’s not enough human food?

    here is an awful wikipedia article which utterly fails to explain the real meaning of the term — that is, how it means.

    https://en.wikipedia.org/wiki/Eating_your_own_dog_food

    So the dogfood test refers to a business parable about a “well-run” canine nutrition products business which cannot figure out a sudden deep and bottomless collapse in sales.  A recent change to the flagship product is obviously to blame, but nobody can figure out what went wrong.  All the science is right, the management is right, the advertising is right, the manufacturing, packaging, distribution — all perfectly “well-run”.

    Nobody asked the dog.

    A business can be as well-run as it wishes, but this is only an enabling (not even necessary) condition for success, and certainly not sufficient.  The dog — who can’t even figure out that you didn’t *actually* throw the stick — has absolute veto power over every facet of the process.

    If the dog won’t eat it, the company can’t sell it.  Period.

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  22. Haakon Dahl:
    drlorentz: Haakon Dahl: FB is beginning to fail the dogfood test, well-run or not. What’s the dogfood test? People are eating dogfood because there’s not enough human food? here is an awful wikipedia article which utterly fails to explain the real meaning of the term — that is, how it means.

    I haven’t heard of Haakon’s usage, but in my experience it refers to the fact that a development group is using the latest version (possibly development version) and thereby “eating their own dogfood.”  This ensures that the development group is as strongly invested in everything working well as is possible.

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